The Changing Hog Industry

Pork producers dodged the worst possibilities of the fourth quarter of 2002 by marketing hogs earlier in the third quarter. By November, the action rekindled a rally in Summer 2003 prices, originally started in July of 2002 on confirmation that producers were reducing the breeding herd in the U.S. Price expectations for 2003, as represented by June Lean Hog Carcass Futures contract prices, were strong through the end of 2002. Continued adequate supplies of pork stalled advances at the beginning of this year (Figure 1)